Capital Gains Tax in Guadeloupe: What You Owe When Selling a Furnished Rental

You bought a studio in Le Gosier or a villa in Saint-François, rented it out for a few years as a furnished tourist rental, and the time to sell is approaching. The big question that comes up in all our conversations with owners across the archipelago: how much will the State take from the gain? Real estate capital gains in Guadeloupe follow the same rules as in mainland France (an overseas department remains a French department), but the LMNP status, depreciation and the new reintegration rule that took effect in 2025 change the picture. Based on the ground and supporting landlords between Sainte-Anne, Deshaies and Le Gosier, we untangle the real calculation here, figures in hand, so you know exactly what you actually keep.

Real estate capital gains in Guadeloupe: the basic principle

A capital gain is the difference between your sale price and your adjusted purchase price. As long as the property is not your main residence (the case of a furnished tourist rental, by definition rented to vacationers), this gain is taxable under the individuals’ regime, calculated and withheld by the notary on the day the deed is signed. You advance nothing: everything is deducted from the sale proceeds.

The tax is made up of two layers, identical in Guadeloupe and mainland France:

• Income tax at the flat rate of 19% on the net capital gain.
• Social levies at the rate of 17.2%.

That is a theoretical total of 36.2% before any allowance. On this point there is no overseas-territory specificity: unlike the 30% tax reduction that lightens your rental income, capital gains for Guadeloupe residents are taxed at the full national scale. The good news comes from the holding-period allowances, which can bring the bill down to zero.

Calculating the “increased” purchase price

The tax authorities don’t crudely compare your two prices. The acquisition price is increased by several items that mechanically lower the taxable gain:

• Acquisition costs (notary, transfer duties): a flat rate of 7.5% of the purchase price, no proof required.
• Improvement, construction or extension works: on invoice, or a flat rate of 15% of the purchase price if you have held the property for more than 5 years. In a tropical zone, where salt and humidity require regular renovations, this item is rarely negligible.

A concrete example for a Grande-Terre villa bought for €380,000 in 2014, resold for €520,000 in 2026:

• Increased acquisition price: €380,000 + 7.5% (€28,500) + 15% flat-rate works (€57,000) = €465,500.
• Gross capital gain: 520,000 − 465,500 = €54,500, not €140,000 as a naive calculation would suggest.

Holding-period allowances: the key to the final bill

This is the most powerful mechanism, and the one that rewards patience. The longer you keep the property, the more the taxable gain melts away, up to full exemption. Be careful: the scales differ between income tax and social levies.

For income tax (19%):

• 0% allowance before 6 years of holding.
• 6% per year from year 6 to year 21.
• 4% in year 22.
• Full income tax exemption after 22 full years.

For social levies (17.2%), the pace is slower:

• 0% before 6 years.
• 1.65% per year from year 6 to year 21.
• 1.60% in year 22.
• 9% per year from year 23 to year 30.
• Full social levy exemption after 30 years.

Let’s take our villa held for 12 years (bought 2014, sold 2026), with a €54,500 gross gain:

• Income tax allowance: 7 full years beyond the 5th × 6% = 42%. Taxable income tax base = €31,610, tax at 19% = €6,006.
• Social levy allowance: 7 × 1.65% = 11.55%. Base = €48,205, at 17.2% = €8,291.
• Total due: about €14,300, an effective rate of 26% on the gross gain, far from the gross 36.2%.

Note: a surtax applies to net gains (after allowances) above €50,000, in brackets of 2% to 6%. Most resales of Guadeloupe furnished rentals fall below this threshold, but a large beachfront villa may be affected.

LMNP, depreciation and resale: the major 2025 change to know

This is where the taxation of a furnished tourist rental differs from that of an unfurnished let property, and where many owners get caught out. Until the end of 2024, the non-professional furnished landlord (LMNP) under the real regime enjoyed two advantages: they depreciated their property each year (often erasing all tax on rents), and this depreciation had no impact on resale. The gain was calculated on the original purchase price, depreciation ignored.

The 2025 Finance Act put an end to this double favor. From now on, for transfers carried out from January 1, 2025, the depreciation deducted during the LMNP real-regime rental period must be reintegrated into the calculation: it reduces the acquisition price, which increases the taxable gain.

What it changes in practice

Let’s take the villa bought for €380,000 (of which €300,000 is the building excluding land), rented for 12 years under the real regime with annual depreciation of €8,000:

• Cumulative depreciation reintegrated: €8,000 × 12 = €96,000.
• Net acquisition price after reintegration: €465,500 (increased) − €96,000 = €369,500.
• Recalculated gross gain: 520,000 − 369,500 = €150,500, versus €54,500 under the old regime.

The gap is considerable. Fortunately, two safeguards limit the damage:

• Holding-period allowances still apply to this increased gain, so the longer you hold, the more the surplus is neutralized.
• Some depreciation remains excluded from reintegration: that relating to construction, reconstruction, extension and improvement expenses, as well as properties classified as furnished tourist rentals in certain cases. Only the “ordinary” depreciation of the original building is affected.

The lesson from the field: if you used the LMNP real regime, have the calculation done by your accountant before signing the preliminary agreement. The trade-off between selling now or holding for three more years to gain 18 points of allowance can represent several thousand euros. This is exactly the type of simulation we direct toward the right contacts in our owners support.

The exemption cases that can change everything

Not every resale is taxed. Several situations wipe out the gain entirely, and some concern archipelago owners directly:

• Long holding: income tax exemption at 22 years, total (income tax + social levies) at 30 years. A furnished rental inherited or held for a long time is resold tax-free.
• First sale of a property other than the main residence, subject to reinvesting the price in the purchase or construction of your main residence within 24 months, if you have not owned your main residence in the previous 4 years.
• Sale price below €15,000: rare for a built property, but possible for a share or a plot of land.
• Elderly or disabled people of modest means, subject to reference taxable income conditions.

A point often overlooked by landlords: the LMNP real regime you used for your rents does not prevent you from benefiting from these exemptions on resale, since the gain is still calculated under the individuals’ regime (not professionals’), as long as you have not switched to LMP (professional landlord).

Sell, or keep renting? Our view as a local manager

Before signing at the notary’s, many owners ask us the real question: does the gain justify selling now? A few benchmarks from our activity in the archipelago:

• The Guadeloupe market remains buoyant: on the south coast of Grande-Terre, beach-adjacent properties in Sainte-Anne, Saint-François or Le Gosier have appreciated by around 3 to 5% per year in recent years, supported by solid tourist demand in the dry season (December to April).
• A well-managed furnished rental pays off before resale: a 3-bedroom villa with a pool rents for €250 to €400 per night in high season, with 65 to 75% occupancy. Over three additional years of holding, net rents can exceed the tax surcharge linked to waiting.
• Reintegrated depreciation is not a reason to rush the sale: deferred by a few years, the transfer benefits from higher allowances that partly offset the reintegration.

If your plan is to keep renting to optimize the timing of the resale, the property still needs to run without exhausting you from 6,700 km away. That’s our job: we market the archipelago’s properties through direct booking, with no platform fees, free cancellation up to 7 days before arrival and 7-day WhatsApp assistance. Travelers book on our Guadeloupe rentals catalog; on the owner’s side, you delegate check-in, cleaning, maintenance and day-to-day tax matters. And the day you decide to sell, you arrive with clean accounts and an income history that adds value to the property. Let’s talk about your project on our owners page, or first explore the destination via our complete guide to Guadeloupe.

FAQ

How is the capital gain calculated when reselling a furnished rental in Guadeloupe?

You start from the difference between the sale price and the purchase price increased by acquisition costs (7.5% flat rate) and works (on invoice or 15% flat rate after 5 years of holding). This gross gain is then reduced by holding-period allowances, then taxed at 19% income tax and 17.2% social levies. Guadeloupe applies the national scale, with no overseas-territory reduction on this point.

Is LMNP depreciation reintegrated into the capital gain since 2025?

Yes. For any resale carried out since January 1, 2025, the depreciation deducted under the LMNP real regime reduces the acquisition price, which increases the taxable gain. Depreciation linked to construction, extension or improvement works is, however, excluded. Have your situation calculated by an accountant before signing.

After how many years am I exempt from capital gains tax in Guadeloupe?

Income tax exemption (19%) is acquired after 22 years of holding. Social levy exemption (17.2%) comes later, at 30 years. Between the two, you remain liable only for social levies, themselves reduced by the progressive allowance. A property held for more than 30 years is resold entirely free of capital gains tax.

Is it better to sell now or keep renting my Guadeloupe property?

It depends on your holding period and your depreciation. Keeping the property a few more years increases the allowances (6% income tax per year beyond the 5th year) and generates rents, which often offsets the reintegration of depreciation. Conversely, if the local market has risen sharply and you are approaching an allowance threshold, a costed simulation will settle it. Delegated management lets you keep renting with peace of mind while waiting for the right moment.